RUTHERFORD, N.J., April 24, 2024 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the "Company"), the holding company for Blue Foundry Bank (the "Bank"), today reported a net loss of $2.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2024, compared to net loss of $2.9 million, or $0.13 per diluted common share, for the three months ended December 31, 2023, and a net loss of $1.2 million, or $0.05 per diluted common share, for the three months ended March 31, 2023. James D. Nesci, President and Chief Executive Officer, commented, "The first quarter was highlighted by significant deposit growth generated through the efforts of our staff. This growth was a catalyst for the margin expansion realized during the quarter. Our asset quality remains strong and our exposure to the more concerning lending markets is minimal." Mr. Nesci continued, "As we are committed to being good stewards of capital, we were pleased to announce our fourth repurchase program in the first quarter. During the quarter, we repurchased more than 532 thousand shares and increased our tangible book value per share to $14.60." Highlights for the first quarter of 2024: Release of provision for credit losses of $535 thousand due to the impact of the change in forecast on the loan portfolio, coupled with a decline in portfolio balances and unused lines of credit Deposits increased $46.3 million, or 3.7% compared to the prior quarter. Uninsured deposits to third-party customers totaled approximately 10% of total deposits as of March 31, 2024. Interest income for the quarter was $20.8 million, an increase of $507 thousand, or 2.5%, compared to the prior quarter. Interest expense for the quarter was $11.4 million, an increase of $286 thousand, or 2.6%, compared to the prior quarter. Net interest margin increased eight basis points from the prior quarter to 1.92%. Book value per share was $14.61 and tangible book value per share was $14.60. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures. 532,052 shares were repurchased under our share repurchase plans at a weighted average share price of $9.49 per share. Lending Franchise The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. During the first three months of 2024, total loans decreased by $6.6 million. The commercial real estate, construction and commercial and industrial portfolios increased by $11.7 million, $2.6 million and $1.6 million, respectively, while the multifamily and residential portfolios decreased by $11.6 million and $10.5 million, respectively. The details of the loan portfolio are below:     March 31,2024   December 31,2023   September 30,2023   June 30,2023   March 31,2023     (In thousands) Residential   $ 540,427     $ 550,929     $ 567,384     $ 580,396     $ 592,809   Multifamily     671,011       682,564       689,966       696,956       695,207   Commercial real estate     244,207       232,505       236,325       237,247       239,844   Construction     63,052       60,414       45,064       36,032       28,141   Junior liens     22,052       22,503       22,297       21,338       19,644   Commercial and industrial     13,372       11,768       9,904       9,743       10,357   Consumer and other     56       47       50       33       58   Total loans     1,554,177       1,560,730       1,570,990       1,581,745       1,586,060   Less: Allowance for credit losses     13,749       14,154       13,872       14,413       14,153   Loans receivable, net   $ 1,540,428     $ 1,546,576     $ 1,557,118     $ 1,567,332     $ 1,571,907     Retail Banking Franchise As of March 31, 2024, deposits totaled $1.29 billion, an increase of $46.3 million, or 3.72%, from December 31, 2023, mostly due to the increase of $45.7 million in time deposits. The Company's strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase retail deposits during the quarter. Brokered deposits were flat for the quarter. The details of deposits are below:     March 31,2024   December 31,2023   September 30,2023   June 30,2023   March 31,2023     (In thousands) Non-interest bearing deposits   $ 25,342     $ 27,739     $ 23,787     $ 26,067     $ 32,518   NOW and demand accounts     373,172       361,139       378,268       404,407       427,281   Savings     250,298       259,402       278,665       315,713       361,871   Core deposits     648,812       648,280       680,720       746,187       821,670   Time deposits     642,372       596,624       572,384       521,074       422,911   Total deposits   $ 1,291,184     $ 1,244,904     $ 1,253,104     $ 1,267,261     $ 1,244,581     Financial Performance Overview: First quarter of 2024 compared to the fourth quarter of 2023 Net interest income compared to the fourth quarter of 2023: Net interest income was $9.4 million in the three months ended March 31, 2024 compared to $9.2 million in the fourth quarter of 2023 as an increase in interest received on interest-earning assets outpaced the increase in interest paid on interest-bearing liabilities. Net interest margin increased by 8 basis points to 1.92%. Yield on average interest-earning assets increased 19 basis points to 4.25%, while the cost of average interest-bearing liabilities increased 13 basis points to 2.86%. Average loans decreased by $9.3 million and average interest-bearing liabilities decreased by $7.6 million. Non-interest expense compared to the fourth quarter of 2023: Non-interest expense increased $699 thousand primarily driven by an increase of $662 thousand in compensation and benefits expenses due to merit increases, as well as variable compensation plans being reset, and an increase in professional fees of $99 thousand, partially offset by a decrease in data processing expense of $123 thousand. Income tax expense compared to the fourth quarter of 2023: The Company did not record a tax benefit for the loss incurred during the first quarter of 2024 and the fourth quarter of 2023 due to the full valuation allowance required on its deferred tax assets. The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At March 31, 2024, the valuation allowance on deferred tax assets was $23.5 million. First quarter of 2024 compared to the first quarter of 2023 Net interest income compared to the first quarter of 2023: Net interest income was $9.4 million for the three months ended March 31, 2024 compared to $11.9 million for the same period in 2023. The decrease is largely due to increases in rates paid on interest-bearing liabilities. Net interest margin decreased by 50 basis points to 1.92%. Yield on average interest-earning assets increased 43 basis points to 4.25%, while the cost of average interest-bearing liabilities increased 109 basis points to 2.86%. Average loans increased by $2.4 million and average interest-bearing liabilities increased by $28.1 million. Non-interest expense compared to the first quarter of 2023: Non-interest expense was $13.2 million, a decrease of $415 thousand driven by a decrease of $298 thousand in compensation and benefits expenses, a decrease of $250 thousand in professional services and a decrease of $214 thousand in data processing partially offset by an increase of $210 thousand and $94 thousand in occupancy and equipment and FDIC premiums, respectively. Income tax expense compared to the first quarter of 2023: The Company did not record a tax benefit for the loss incurred during the first quarters of 2024 and 2023 due to the full valuation allowance required on its deferred tax assets. The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At March 31, 2024, the valuation allowance on deferred tax assets was $23.5 million. Balance Sheet Summary: March 31, 2024 compared to December 31, 2023 Cash and cash equivalents: Cash and cash equivalents increased $7.7 million to $53.8 million. Securities available-for-sale: Securities available-for-sale decreased $18.6 million to $265.2 million due to maturities and paydowns. Unrealized losses increased $1.1 million to $31.8 million. Other investments: Other investments decreased $2.4 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings. Total loans: Total loans held for investment decreased $6.6 million to $1.55 billion. Commercial real estate loans increased $11.7 million, construction loans increased $2.6 million and commercial and industrial loans increased $1.6 million offset by a reduction of $11.6 million in multifamily loans and $10.5 million in residential loans in line with our strategy to further diversify our loan portfolio. Deposits: Deposits totaled $1.29 billion, an increase of $46.3 million from December 31, 2023. This was largely the result of a $45.7 million increase in certificate of deposits. Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 50.3% of total deposits, compared to 52.1% at December 31, 2023 and 66.0% at March 31, 2023. Brokered deposits totaled $125.0 million at March 31, 2024 and December 31, 2023. Uninsured and uncollateralized deposits to third party customers were $133.4 million, or 10% of total deposits, at the end of the first quarter. Borrowings: FHLB borrowings decreased $55.0 million to $342.5 million as deposit growth outpaced asset growth. As of March 31, 2024, the Company had $379.7 million of additional borrowing capacity at the FHLB and $33.2 million of other unsecured lines of credit. Capital: Shareholders' equity decreased by $5.5 million to $350.2 million. The decrease was primarily driven by the repurchase of shares, including net shares, at a cost of $5.3 million. Tangible equity to tangible assets was 17.25% and tangible common equity per share outstanding was $14.60. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures. The Bank's capital ratios remain above the FDIC's "well capitalized" standards. Asset quality: As of March 31, 2024, the allowance for credit losses ("ACL") on loans as a percentage of gross loans was 0.88%. The Company recorded a net release of provision for credit losses of $535 thousand for the quarter ended March 31, 2024, driven by decreases in all categories. There was a release of $396 thousand in the ACL for loans, $121 thousand in the ACL for off-balance-sheet commitments and $18 thousand in the ACL for held-to-maturity securities. The release was driven by improvements in the economic forecast for the key drivers of our model. Non-performing loans totaled $6.7 million, or 0.43% of total loans compared to $5.9 million, or 0.38% of total loans at December 31, 2023, and $7.5 million, or 0.47% of total loans at March 31, 2023. Net charge-offs were $9 thousand for the quarter ended March 31, 2024. Ratio of non-performing loans to allowance for credit losses on loans was 205.48% at March 31, 2024 compared to 239.98% at December 31, 2023 and 189.18% at March 31, 2023. About Blue Foundry Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC. Conference Call Information A conference call covering Blue Foundry's first quarter 2024 earnings announcement will be held today, Wednesday, April 24, 2024 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 580671. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company's website for one month. Contact:James D. NesciPresident and Chief Executive Forward Looking Statements Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; the effects of the recent turmoil in the banking industry; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events. BLUE FOUNDRY BANCORP AND SUBSIDIARYConsolidated Statements of Financial Condition       March 31,2024   December 31,2023   September 30,2023   June 30,2023   March 31,2023     (unaudited)   (audited)   (unaudited)   (unaudited)   (unaudited)     (Dollars in Thousands) ASSETS                     Cash and cash equivalents   $ 53,753     $ 46,025     $ 52,407     $ 45,759     $ 57,621   Securities available-for-sale, at fair value     265,191       283,766       283,649       300,923       309,083   Securities held to maturity     33,217       33,254       33,298       33,445       33,472   Other investments     17,908       20,346       20,515       20,420       21,070   Loans held-for-sale     —       —       2,435       2,497       2,552   Loans, net     1,540,428       1,546,576       1,557,118       1,567,332       1,571,907   Real estate owned, net     593       593       593       —       —   Interest and dividends receivable     8,001       7,595       7,787       7,285       7,375   Premises and equipment, net     31,696       32,475       32,031       31,519       30,839   Right-of-use assets     24,454       25,172       25,885       26,594       26,320   Bank owned life insurance     22,153       22,034       21,919       21,802       21,688   Other assets     30,393       27,127       22,939       22,938       19,128   Total assets   $ 2,027,787     $ 2,044,963     $ 2,060,576     $ 2,080,514     $ 2,101,055                         LIABILITIES AND SHAREHOLDERS' EQUITY                 Liabilities                     Deposits   $ 1,291,184     $ 1,244,904     $ 1,253,104     $ 1,267,261     $ 1,244,581   Advances from the Federal Home Loan Bank     342,500       397,500       402,500       399,500       422,500   Advances by borrowers for taxes and insurance     9,368       8,929       9,615       9,862       9,695   Lease liabilities     26,081       26,777       27,466       28,130